Shares of Strategy stock carved lower Monday after the software company and bitcoin treasury warned of a massive loss for its Q1 results. The price of bitcoin tumbled on Sunday as the market prepared for another tariff-driven sell-off.
Strategy, formerly known as MicroStrategy, said in a Monday filing with the Securities and Exchange that it expects unrealized digital asset losses for Q1 to total $5.91 billion, which was partially offset by $1.69 billion in income-tax benefits. The company expects the unrealized losses to result in a net loss for the quarter.
Between March 24 and March 30, Strategy bought 22,048 bitcoin for $1.92 billion, with an average price of $86,969, according to a separate 8-K filing.
The company said it did not purchase any bitcoin between March 7 and April 7.
Strategy reported that during the quarter it generated $7.69 billion in proceeds from its various share offerings.
As of March 31, Strategy held 528,185 bitcoin with an average purchase price of $67,458.
For the first quarter, FactSet analysts expect Strategy to report a loss of 11 cents per share, improving from a loss of 31 cents last year. Revenue is expected to tick up to $116.8 million from $114.9 million. The company typically reports Q1 results in late April or early May, but hasn't announced an official date yet.
Strategy Stock, Bitcoin Price Tumbles
Meanwhile, bitcoin overnight tumbled below $74,500 from its Sunday afternoon level around $83,000. The price of bitcoin recovered to near $78,500 late Monday, but is still down 1% over the past 24 hours, according to CoinMarketCap data.
The world's largest cryptocurrency is down almost 9% over the past month amid the tariff sell-off. The crypto is only slightly outperforming the Nasdaq and S&P 500, which are down about 9.8% for the month.
Strategy stock fell 8.7% Monday, to retreat further from its 50-day line. MSTR stock is now down 7.4% so far this year.
Coinbase stock declined 2% Monday, with shares down almost 37% in 2025.
The iShares Bitcoin Trust and other spot bitcoin ETFs traded 7% lower or more on Monday.
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